How to use a personal loan to tackle your emergency expenses

Spotlight Wire / Feb 17, 2025, 13:47 IST

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A personal loan can be a crucial solution for handling emergency expenses like medical bills, home repairs, or urgent travel. These loans offer quick approval, flexible repayment terms, and don’t require collateral, allowing for immediate financial relief while maintaining financial stability.

How to use a personal loan to tackle your emergency expenses

Life is full of surprises—sometimes good, sometimes not so much. Unexpected medical bills, home repairs, or urgent travel can put a dent in your finances. In such situations, a personal loan can be a lifesaver, offering quick access to funds without requiring collateral. Let’s explore how you can use a personal loan to manage emergency expenses efficiently.
Why choose a personal loan for emergencies?
A is a financial tool to handle urgent expenses. Here’s how:

Quick approval and disbursal: Many lenders provide instant approval, with funds transferred within a short time of application. With a Bajaj Finserv Personal Loan, you can apply online and get instant approval depending on your eligibility and paperwork submission. Once approved, the loan can be disbursed within 24 hours*, making it easy to manage urgent expenses.
No collateral required: Unlike home or car loans, a personal loan is unsecured, meaning you don’t need to pledge any asset.
Flexible repayment tenure: You can choose a tenure that suits your financial situation. A Bajaj Finserv Personal Loan comes with flexible, long-tenure options, ranging from 12 to 96 months. This allows you to spread your repayment as per your budget.

Types of emergencies you can cover with a personal loan

Medical expenses
Medical emergencies come unannounced and can be financially overwhelming. A personal loan can help cover hospital bills, surgery costs, or expensive treatments without depleting your savings.
Home repairs and renovations
Whether it’s a leaky roof, plumbing issues, or an electrical breakdown, urgent home repairs can’t be delayed. A personal loan provides quick funding to handle such repairs.
Urgent travel
If you need to travel suddenly due to a family emergency, a personal loan can help you book last-minute flights and cover accommodation expenses without financial strain.
Debt consolidation
If you have multiple debts with high interest rates, you can take a personal loan to consolidate them into a single, manageable payment.

How to use a personal loan smartly for emergencies?

Assess your exact need
Borrow only what is necessary. Taking a higher loan amount than required may lead to unnecessary debt.
Check your repayment capacity
Before applying, ensure you can comfortably repay the loan. Use a to estimate your monthly EMIs and choose a tenure that fits your budget.
Compare lenders for the best interest rates
Different banks and NBFCs offer varying interest rates. Compare multiple options to find the most affordable loan. With a Bajaj Finserv Personal Loan, you can benefit from low interest rates and also their Flexi Hybrid Loan facility – which gives the option of interest-only EMIs for the initial tenure.
Read the terms and conditions carefully
Look for processing fees, prepayment charges, and penalties to avoid surprises later.
Make timely repayments
Missing EMIs can lead to late fees and affect your credit score. Automate payments to stay on track.

A personal loan is a financial tool during emergencies, offering quick access to funds without the hassle of pledging collateral. However, responsible borrowing is key. Use the loan wisely, repay it on time, and keep your finances in check.
Disclaimer - The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the content.

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